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marin [14]
3 years ago
15

PA11.

Business
1 answer:
NARA [144]3 years ago
4 0

Answer:

Using Traditional allocation method

Allocation rate per unit

=<u> Budgeted overhead</u>

  Budgeted direct labour hours

Brass

Overhead allocation rate

= <u>$47,500</u>

  700 hours

=  $67.86 per direct labour hour

Gold

= <u>$47,500</u>

   1,200 hours

=  $39.58 per direct labour hour

Using activity-based costing

Brass

Allocation rate for material cost pool                                                                                                                                                  

= <u>$12,500</u>

   400

=  $31.25 per material moved

Gold

Allocation rate for material cost pool

= <u>$12,500</u>

   100    

= $125 per material moved

Brass

Allocation rate for machine set-up pool

= <u>$35,000</u>

  400

= $87.50

Gold

Allocation rate for machine set-up pool  

= <u>$35,000</u>

   600

= $58.33                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

Explanation:

Using traditional allocation method, the overheads for material cost pool and machine set-up pool will be added. The overhead allocation rate per unit is the division of total overhead by the direct labour hours for each product.        

Using activity-based costing, the material cost pool overhead  will be divided by the material moved for each product in order to obtain allocation rate for each product.                                                                                                                                                                

The allocation rate for machine set-up pool is obtained by dividing the machine set-up overhead by the number of machine set-up for each              product.                                                                                      

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Answer:

3.05

1.38

0.725

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Arc elasticity of demand = midpoint change in quantity demanded / midpoint change in price  

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

Price $25-$20

change in quantity demanded  = 40 - 20 = 20

average of both demands = (40 + 20) /2 = 30

Midpoint change in quantity demanded = 20/30 = 0.67

midpoint change in price = change in price / average of both price

change in price = $25 - $20 = $5

average of both price = ($25 + $20) / 2 = 22.5

Price $20-$15

change in quantity demanded  = 60 - 40 = 20

average of both demands = (60 + 40) /2 = 50

Midpoint change in quantity demanded = 20/50 = 0.4

midpoint change in price = change in price / average of both price

change in price = $20 - $15 = $5

average of both price = ($15 + $20) / 2 = 17.5

midpoint change in price = 5 / 17.5 = 0.29

0.4/0.29 = 1.38

Price elasticity of demand = 0.67 / 0.22 = 3.05

change in quantity demanded  = 80 - 60 = 20

average of both demands = (80 + 60) /2 = 70

Midpoint change in quantity demanded = 20/70 = 0.29

midpoint change in price = change in price / average of both price

change in price = $15 - $10 = $5

average of both price = ($15 + $10) / 2 = 12.5

5/12.5 = 0.4

3 0
3 years ago
If the contribution margin is not sufficient to cover fixed expenses: a. total profit equals total expenses. b. a net operating
erik [133]

Answer:

Option b. a net operating loss occurs.

Explanation:

contribution margin is simply known to be that portion of sales revenue that is yet to be consumed by variable costs and so is an addition to covering the fixed costs. The higher the contribution margin ratio, the more smaller or fewer the units that will need to be manufactured to become profitable. In short, it is sales revenue minus fixed expenses.

3 0
3 years ago
If the cross- price elasticity of demand between beer and wine is 0.31, then beer and wine are complements. a. substitutes. b. p
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Answer:

The answer is Substitutes.

Explanation:

For cross-price elasticity we can either have substitute goods or compliment goods. If the cross-price elasticity is positive, then the goods are substitutes and If the cross-price elasticity is negative, then the goods are compliments.

In this example, the cross-price elasticity is 0.31. This answer is postive, meaning, beer and wine are substitutes.

So 1% increase in price of wine will make demand of beer to rise by 0.31.

It can't be complement s because it is not negative.

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Answer:

B. Evenly over the membership year

Explanation:

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Answer and Explanation:

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Add:

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Less:

Purchase Return  -$2,000

Less:

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Cost of goods sold $136,850

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